Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — CLSA Iron Ore Access Day 2014
25 slides from Bci Minerals's conference presentation, Feb 5, 2014
Slide 1: ASX cover letter for CLSA presentation
5 February 2014 For personal use only The Manager Company Announcements Office Australian Securities Exchange Dear Sir, BC Iron Limited (ASX:BCI) Following is a presentation on BC Iron Limited that will be delivered by Managing Director Morgan Ball at the CLSA Iron Ore Access Day to be held in Sydne
Slide 2: CLSA Iron Ore Access Day
For personal use only CLSA Iron Ore Access Day Morgan Ball – Managing Director 1 ASX:BCI 6 Feb ‘14
Slide 3: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 2
Slide 4: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: ASX 200 member, liquidity significantly enhanced post Dec-12 TSR focus: Outperformed peers on TSR basis since Jul-12 Capital management: Robust balance sheet, conservative gearing, ongoing dividends At target producti
Slide 5: December Quarter Review
DECEMBER QUARTER REVIEW For personal use only Mining and crushing below expectations at 1.36Mt and 1.37Mt respectively Operational challenges (being addressed) and early onset of wet season Platts CFR62 price of Sales of 1.52Mt (BCI share 1.30Mt) US$123/dmt on 3 Feb 13 LOM guidance of On tra
Slide 6: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (dmt) Ore Processed (wmt) Ore Shipped (wmt) 1.8 1.8 1.8 1.6 1.6 1.6 1.4 1.4 1.4 1.2 1.2 1.2 1.0 1.0 1.0 0.8 0.8 0.8 0.6 0.6 0.6 0.4 0.4 0.4 0.2 0.2 0.2 0.0 0.0 0.0 5
Slide 7: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 123.9m $5.50 7 Share Price (at 3-Feb-14) $5.22 $5.00 6 $4.50 5 Market Capitalisation $647m Volume (m) Share Price $4.00 4 Cash (at 31-Dec-13) $197m $3.50 3 Debt (at 31-Dec-13) $68m $3.00 2 Enterprise Va
Slide 8: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – 1 Jul 12 to Current Why has BC Iron outperformed its peers? 128% Quality project with low capital intensity 87% Low risk 33% 11% Continued strong operational performance Repeated delivery against guidance (47%) (42%) (78%) St
Slide 9: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing DSO project with access to world-class infrastructure. Unincorporated joint venture – 75% BC Iron, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (through its wholly-owned infrastructure s
Slide 10: Mining – Overview
MINING – OVERVIEW For personal use only A fully contracted operation with low capital intensity. Contract mining by WATPAC, utilising Wirtgen and Vermeer surface miners Mine plan comprises four major deposits Currently mining Outcamp and Warrigal Bonnie East contributes from FY16 and Coongan
Slide 11: Mining – Overview
MINING – OVERVIEW For personal use only Mining Area Bottom of Orebody Water Table Shallow “pits” using surface mining Above water table - lower environmental 10 impact, no wet ore.
Slide 12: Mining – Surface Miners
MINING – SURFACE MINERS For personal use only Mesa edge bund wall Surface miner cut panel Ore block piles Wirtgen & Vermeer Surface Miners Rotating drum cutters – no drill & blast Environmental benefits, reduced run off 11 Provides primary crushing Surface mining results in reduced equipment
Slide 13: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Crushing / Screening (WATPAC) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Simple crushing & screening Ore trucked via private sealed World class rail and port process road to dedicated stockyard at Access to Capesize vessels
Slide 14: Project Inventory
PROJECT INVENTORY For personal use only Project Inventory is assessing potential for increases in Reserves and mine life Targeting in-pit low grade… … and near- Focus on beneficiation of low grade (50-55% Fe) pit low grade Potential to increase Reserves and mine life from: Low grade within e
Slide 15: Iron Ore Outlook and China
IRON ORE OUTLOOK AND CHINA For personal use only Chinese fundamentals drive robust long term outlook for iron ore. GDP growth expected to remain strong (>7.5% p.a.) – significant in absolute terms given China is now the world’s 2nd largest economy New government positive about growth – Third Ple
Slide 16: Bonnie Fines Overview
BONNIE FINES OVERVIEW For personal use only Bonnies Fines well accepted - consistent demand. “Bonnie Fines” pisolite sinter blend improves sintering productivity at the steel mill High calcined Fe driven by high Loss On Ignition (LOI) Low impurities, low ultra-fines and low moisture Low Al a
Slide 17: Bonnie Fines Marketing & Pricing
BONNIE FINES MARKETING & PRICING For personal use only BCI Attributable Tonnes BCI CFR Received Price vs. Platts CFR62 Price $200 Bonnie Fines $180 Iron Ore Price (US$/dmt) $160 $140 ~3.2Mtpa til 2018 ~1.3Mtpa til 2018 ~4.5Mtpa thereafter Nil thereafter $120 $100 Uncommitted ore Henghou commitment S
Slide 18: Business Development
BUSINESS DEVELOPMENT Goals For personal use only Retain and enhance ability to pay dividends Generate value for shareholders (risk adjusted) via organic and inorganic opportunities Three Priorities Brazilian Exploration Projects Priority 1 – extend life of NJV (Project Inventory) BC Iron / C
Slide 19: Appendices
APPENDICES For personal use only APPENDICES 18
Slide 20: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Andy Haslam, Non-exec Director – a mining engineer with extensive experience in management and operation with 27 years operational and management experience. of Australian public c
Slide 21: FY2013 – Performance
FY2013 – PERFORMANCE For personal use only Full Year ended 30 June 2013 2013 2012 Variance Variance NJV NJV Tonnes Shipped (M wmt) 5.00 3.55 1.45 41% BCI Tonnes Shipped (M wmt) 3.15 1.77 1.38 78% BCI Average CFR Price Realised ($US/dmt) $112 $124 ($12) (10%) BCI C1 Operating Cash Cost ($/wmt) $38 $5
Slide 22: Ore Reserves & Mineral Resources - Jun '13
ORE RESERVES & MINERAL RESOURCES - 30 JUN ‘13 For personal use only Ore Reserve Estimate NJV (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 18.9 57.3 65.0 1.8 3.0 0.015 0.012 11.8 Probable 18.3 56.9 64.8 2.0 3.0 0.014 0.011 12.2 Total 37.2 57.1 64.9 1.9 3.0 0.015 0.
Slide 23: JORC Disclosures
JORC DISCLOSURES For personal use only JORC Competent Persons Statement The information in this report that relates to the Mineral Resource Estimate at Outcamp, Bonnie East, Coongan, Dandy and Warrigal is based on, and fairly represents, information which has been compiled by Mr Rob Williams who is
Slide 24: Important Notice
IMPORTANT NOTICE For personal use only This document has been prepared by BC Iron Limited (“BC Iron” or “Company”) to provide an update of BC Iron to investors and potential new shareholders. Past performance Past performance information given in this document is given for illustrative purposes only
Slide 25: For personal use only
For personal use only ASX:BCI Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au